ICI and Chamber of Commerce Bring Suit Challenging CFTC Rules

April 17, 2012

The Investment Company Institute (ICI) and the U.S. Chamber of Commerce today filed suit against the CFTC, challenging its proposed amendments that would roll back exemptions previously available to mutual funds and ETFs.  The ICI and Chamber assert that the CFTC’s action will result in redundant regulations on registered investment companies and not satisfy the CFTC’s obligation to weigh the costs or benefits of the rule.  In particular, the ICI states that the CFTC’s action layers the CFTC’s regulatory regime atop that already applied to funds by the SEC under all the major federal securities laws and that the CFTC in its rulemaking process did not remotely justify such regulatory excess.

The suit was filed in the U.S. District Court for the District of Columbia.  The CFTC’s Rule 4.5 amendment requires advisers to registered investment companies already regulated by the SEC to be dually regulated by the CFTC as “commodity pool operators.”  The complaint filed by the ICI and Chamber states the rule is arbitrary and capricious and requests injunctive relief to prevent the CFTC from implementing the Rule.

Click http://ici.org/pressroom/news/12_news_cftc_complaint for the press release announcing the suit.

Click http://ici.org/pdf/12_commod_inv_complaint.pdf for a copy of the complaint.



Investment Advisers, Investment Companies, Regulatory